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Rational outcomes of a social system do not necessarily require its individual par-ticipants to be rational. In macro systems, aggregate properties distinct from the behavior of their micro level components can emerge through complex interactions. Caution in building social sciences on...
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Forming beliefs or expectations about others’ behavior is fundamental to strategy as it codetermines the outcomes of interactions in and across organizations. In the game-theoretic conception of rationality, agents reason iteratively about each other to form expectations about behavior....
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Social sciences start by looking at the social-psychological attributes of humans to model and explain their observed behavior. However, we suggest starting the study of observed human behavior with the universal laws of physics, e.g., the principle of minimum action. In our proposed three-tier...
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